Form 8606 is the US Internal Revenue Service tax form for determining the taxable portion of any non-deductible contributions to, distributions from, or conversions between the various IRA types. This tag can be used for questions about filing Form 8606 with tax return Forms 1040 or 1040NR, or on its own if amending a prior year's Form 8606.
Form 8606 is named Nondeductible IRAs. It is used to determine taxable income as a result of one or more of the following three situations for a given tax year:
- making nondeductible contributions to Traditional IRAs and taking distributions from Traditional, SEP, and SIMPLE IRAs
- converting part or all of your Traditional, SEP, or SIMPLE IRAs to Roth IRAs
- taking a distribution from a Roth IRA (excluding any rollover distributions, qualified charitable distributions, one-time distribution to fund an HSA, or account recharacterization)
The IRS offers guidance about any changes over time, including instructions for completion.